Bank Guarantee

MUMBAI: Nimbus Communications has secured a bank guarantee of Rs 250 crore from a clutch of banks giving a much-needed boost to the Harish Thawani-promoted company's efforts to settle pending financial issues with the Board of Control for Cricket in India (BCCI). The bank guarantee has been raised from four banks including the State Bank of India and UTI Bank. Nimbus had to deposit Rs 125 crore as a pre-condition to procure the guarantee. Nimbus needed to furnish a guarantee of...

NEW DELHI: The Supreme Court today asked two real estate firms engaged in a tug of war over purchasing Sahara Group's over 140 acre land properties in Gorakhpur in Uttar Pradesh to show their "bonafides" as the money to be generated from the sale would help in the release of its jailed chief Subrata Roy . A bench comprising Justices T S Thakur, A R Dave and A K Sikri asked one of the firms, Gorakhpur Real Estate Developers Private Limited...

NEW DELHI: After taking over the operations of the Airport Metro line, Delhi Metro Rail Corporation ( DMRC ) has encashed the bank guarantee of nearly Rs 55 crore deposited by Reliance Infra-owned Delhi Airport Metro Express Private Limited ( DAMEPL ). DMRC, which is now running the national capital's airport metro link, had encashed the bank guarantee deposited by DAMEPL at the time of taking over of the operations of the Airport line, sources said.

NEW DELHI: In a significant ruling, the Supreme Court has laid down guidelines for encashment of bank guarantee or letter of credit. A bench comprising justice Tarun Chatterjee and justice PK Balasubramanyan said, "We find that the following principles should be noted in the matter of injunction to restrain the encashment of a bank guarantee or a letter of credit (LoC). " First, banks that give such guarantees are duty-bound to honour them as per terms agreed upon between the parties...

NEW DELHI: Importers of certain categories of processed metallic scraps will have to submit self declaration -cum-legal undertaking that their consignments have been inspected before shipment and do not contain any explosive or radioactive material. As per the provisions notified by the Commerce Ministry , importers will also have to submit that the metal scrap being imported is processed. "Provision relating to import of certain categories of processed metallic scrap, at...

NEW DELHI: The Supreme Court on Friday allowed incarcerated Sahara chief Subrata Roy to stay eight more weeks in a special facility at Tihar jail to enable him to raise a bank guarantee of Rs 5,000 crore as a condition for his release. This will be encashed should the group default in paying two installments of the rest of its liabilities, estimated by the top court at Rs 36,000 crore. Roy had sought either parole or eight weeks in a special facility with...

NEW DELHI: Fraport, the German transport company that operates the Frankfurt International Airport, has dropped its demand for a bank guarantee from the Indian flagship carrier Air India immediately after a meeting with the airlines airport representative, an official in the company said. Fraport had demanded a bank guarantee to secure its financial interests amidst the global crisis in the airline sector. Air India executive director (corporate communications)

NEW DELHI: State-run Indian Oil Corp (IOC) has encashed a Rs 50 crore bank guarantee after a cheque issued by Kingfisher Airlines towards fuel dues bounced. IOC encashed the bank guarantee Kingfisher had given for buying aviation turbine fuel or ATF for its fleet of 75 aircraft, 10-days back, industry sources said. As on April 20, the private air-carrier owed IOC about Rs 160 crore in fuel bills. It sent a cheque of the amount to IOC but the cheque bounced, forcing IOC to...

NEW DELHI: The urban development ministry plans to press developer Emaar-MGF to set right defects and plan violations in the Games Village project and will not to relent on its decision to invoke the builder's bank guarantee of Rs 183 crore. With a blame game playing out between the government and Emaar-MGF, the urban development ministry has directed DDA to stay focused on deficiencies that have come to light with regard to construction at the Games Village. DDA will...

CHANDIGARH: The Haryana government has invoked Rs 1.5 crore bank guarantee of Reliance Communications for not providing it with bandwidth as agreed upon for the State Wide Area Network programme. "The company has failed to provide free bandwidth to the several government departments as per agreement. Therefore we have invoked its bank guarantee amounting of Rs 1.5 crore," a senior official of Haryana Information Technology department said on the...

KOLKATA: The coal ministry has ordered deduction of bank guarantee in the case of D B Power while deallocating coal blocks of some firms. In the case of D B Power, the IMG has recommended the deduction of bank guarantee to the extent of Rs 5.1 crore. "The BG as calculated by the coal controller to the extent of Rs 5.104 crore be deducted and deposited with the government," the letter from the Coal Ministry said. The BG deduction is for Durgapur-II/Sariya block. ...

NEW DELHI: Sahara chief Subrata Roy's immediate release from Tihar jail remained uncertain as the Supreme Court today declined to relax the conditions for interim bail like depositing Rs 5000 crore in cash and a bank guarantee of equal amount and set more tough terms including payment of the entire Rs 36,000 crore in 18 months. Immediately after a bench of justices T S Thakur, A R Dave and A K Sikri pronounced the judgement, Roy's counsel Kapil Sibal...

NEW DELHI: The Supreme Court today reserved its order on various aspects relating to release of Sahara Chief Subrato Roy from jail saying it would decide how more money has to be paid and as to when SEBI may encash the bank guarantee in future. A three-judge bench headed by Justice T S Thakur, while reserving the order, asked the counsel of Sahara Chief to furnish the "scheme" within two weeks giving details as to how the group proposes to proceed with the sale of its assets and...

NEW DELHI: The Oil Ministry wants UK's BP plc to furnish a bank guarantee and an undertaking that it will meet the minimum investment requirement for getting a licence to retail jet fuel (ATF) to airlines in India. The ministry, which had in March rejected BP's application to sell ATF on the ground that its investment does not qualify for a retailing licence, says the Europe's second-largest oil company can still get the licence provided it meets the...

NEW DELHI: A decision on bank guarantees provided by the previous allottees for 130 coal block would be taken after considering the views expressed by the state governments in this regard to an inter-ministerial panel. The Coal Controller's Organisation will calculate the amount to be deducted from the bank guarantees, as per a decision taken by this panel. The deadline for submission of comments by the state governments in this regard ended today. The CCO ...

NEW DELHI: The coal ministry has prescribed tough timelines for the development of the recently auctioned coal mines . Overshooting the deadline may lead to phased deduction of bank guarantee. Companies which bagged coal blocks during the first and second rounds of auction are required to apply for statutory permissions for transfer of the blocks in their name within a month, while the transfer formalities are required to be completed in three months. The ministry...

NEW DELHI: The Airports Authority of India (AAI) is planning to encash the Kinfisher Airlines' bank guarantee worth Rs 60-70 crore unless the airline comes with either cash or a concrete plan for clearing around Rs 256 crore dues within a week. However, AAI's needs clearance from the civil aviation ministry. "Kingfisher's dues were Rs 256 crore over a month back and by now another Rs 30 crore would have been added. They have paid only about Rs 10 crore. We'll wait till next Monday and...

IDFC, the infrastructure lender, is poised to wear the hat of a bank soon. The road ahead may be a lot more rough than the one to get the licence from the Reserve Bank of India to convert into a bank. Rajiv Lall , executive chairman, details his strategy in an interview with ET. Edited excerpts. What are the challenges in transforming IDFC to a bank? The focus is to make the transition, and there are many aspects to the transformation. For us,...

NEW DELHI: Uncertainties loom large over embattled Sahara's fund raising plans even as the group today said that its proposed arrangements to raise money for release of its chief Subrata Roy cannot be subjected to public debate and speculative media trials. Even as Sahara has presented a fresh plan to the Supreme Court for raising funds, reports from Madrid suggest that Spanish lender BBVA has denied offering any credit to...